Indo- Russia Relations

EVOLUTION OF
INDO – RUSSIA RELATIONS

A REPORT

EXECUTIVE SUMMARY
This report discusses the evolution of relations between India and USSR (now Russia) over the last six decades. India’s independence and its need for military supplies (due to strained relations with its neighbours Pakistan and China) compelled it to extend a hand of friendship to USSR. There was done by the means of cultural exports like like Raj Kapoor films and Ramayana. Soon enough Russia became the largest supplier of armaments to India, and this link proved very useful during the 1971 war.
The next phase focuses on the straining of diplomatic relations between the two countries during the disintegration of USSR. The drop in the volume of trade (due to USSR’s political instability) coupled with the cryogenic controversy and the differences in the Rupee- Rouble rate made the countries drift further away from each other.
Post 1993’s visit of the Russian PM Yeltsin the focus has shifted into bridging that gaps that were formed during the disintegration phase. The Agreement on Protecting the Interests of Multiethnic and Pluralistic Countries have enabled the two economies to build cultural, social and trade relations based on mutual trust and respect. The export of bollywood films and Indian culture by Zee Russia and the growing interest of Indian Film makers for using Russia as an outdoor location for shooting movies have strengthened the cultural ties further.

TABLE OF CONTENTS
1. INTRODUCTION………………………………………………………………………………..06

2. SOVIET PHASE (1947 – 1982)…………………………………………………………..07
2.1. TECHNOLOGY
2.1.1. Launch of Indian Satellite (INSAT)
2.2. CULTURE
2.2.1. Raj Kapoor
2.2.2. Ramayana
2.3. DEFENCE
2.3.1. 1971 war
2.3.2. Armed Forces Key Supplier

3. DISINTEGRATION PHASE (1982 – 1993)……………………………………………10

3.1 Cryogenic Deal Controversy
3.2 Differences over Rupee – Rouble Exchange Rate

4. POST – SOVIET PHASE (1993 ONWARDS)……….……………………………….12
4.1 . POLITICAL
4.1.1 The Yeltsin Period
4.1.2 Resurgence of relations after Putin comes to power
4.2 . EDUCATION
4.2.1 Indian students flock to Russia
4.3 . CULTURE
4.3.1 Zee Russian
4.3.2 Latest Movies shot in Russia

5. REFERENCES….………………………………………………………………………………..16

1. INTRODUCTION
Even prior to the Indian independence in 1947, there were many connections between the two countries. Svetoslav Roerich, who was the son of Nicholas Roerich, the renouned artist and philosopher, married an Indian actress Devika Rani and settled in India. One must also take note of the close links of some of Indian freedom fighters with Soviet leaders. For instance the great Indian revolutionary M. N. Roy’s links with the Soviet leadership, particularly Lenin, are some of the treasured moments in the chronicles of the India-Russia relations.
This report discusses the evolution of relations between India and USSR (now Russia) with special focus on the cultural influence India had on Russia. The Indian film icons Raj Kapoor and Nargis formed an everlasting bridge between the Indian and Russian people, which has survived many decades. The Indo-Russian co-production Pardesi was a blockbuster in Russia Even today many Russians can sing along to the songs of Raj Kapoor movies, in spite of having absolutely no prior knowledge of any Indian Language.
After the disintegration of the U.S.S.R there was a phase of a sudden dip in the diplomatic and trade relations between the two countries. A few controversies coupled with deferring interests of the two countries made India and Russia drift further away from each other. The visit of Russian President Boris Yeltsin to India in 1993 could be termed a turning point in India-Russia relations. His political successor Putin has further strengthened the ties between the two countries. Infact one could argue that the current state of affairs is as pleasant as it was in the Soviet era.
This bonding inspired by cinema and culture was in limelight when Russian President Dmitry Medvedev dropped in at a film studio in Mumbai during his visit to India in December last year. On the other end of the spectrum Prime Minister Manmohan Singh and his wife Gursharan Kaur were entertained with the orchestra playing “Main Awara hoon” and “Jeena Yahan Marna Yahan” at the luncheon hosted by President Dmitry Medvedev at the Kremlin. Russia is also willing to invite Indian filmmakers to Russia for shooting various movies and opening of film institutes.
Broadly, the relations of India and Russia can be divided into three phases:
Soviet Phase (1947 – 1982)
Disintegration Phase (1982 – 1993)
Post-Soviet Phase (1993)

2. SOVIET PHASE (1947 – 1982)
The cold war led to many events that highlighted a growing need for a partnership between Russia (then USSR) and India. India emerged as a strategic partner due to its geographical location. India with its shared border with Afghanistan was seen as a link to the rest of the Asian countries. India was also emerging as a leader amongst the third world countries with the political collaboration called the Non Aligned Movement. Non Aligned Movement was ridiculed and belittled by the USA while the attitude of the Soviet Union was that of a positive approval. Both Soviet Union and USA tried hard to get greater access to the Indian subcontinent. So when the USA extended military support to Pakistan, Soviet Union felt compelled to do the same towards India.
2.1. TECHNOLOGY
2.1.1. ARYABHATTA: INDIA’S FIRST SATELLITE
India’s first satellite name Aryabhata was launched with the help of Russia (then USSR). Named after the great Indian astronomer of the same name, it was launched by the Soviet Union on 19 April 1975 from Kapustin Yar using a Cosmos-3M launch vehicle.
It was built by the Indian Space Research Organization (ISRO) to gain know-how in building and operating a satellite in space. The launch of the satellite proved India’s indigenous competence in satellite technology. The satellite also included three scientific experiments. The launch of the satellite not only proved the India’s capability but also created the expert scientists and engineers who contributed significantly in launching India’s first mission to Moon, Chandrayaan-I.
Objectives of the Aryabhata Mission,
Indigenous design, fabrication of a satellite and the assessment of its performance in orbit
To have the capability to perform a succession of complex operations on the satellite in the orbit in space.
To have the competence to set-up the necessary ground stations required to communicate with the satellite.
To test the potential to fabricate, test and qualify the sophisticated spacecraft systems.

2.2. CULTURE
2.2.1. THE CULT OF RAJ KAPOOR
Raj Kapoor movies like Awaraa and Shri 420 were big hits in Russia. In the 1950s Raj Kapoor, one of the most popular romantic actors of his time was an icon in the Soviet Union. Children would make up their own translation of his songs in Russian and sing them on the street. In early fifties, just after the devastating war with Germany, the country was still in ruins, poverty at its peak and the Russians were living a life full of privations and shortages. Raj Kapoor movies were a symbol of optimism for Russia, whether he played the carefree tramp in Awaara or an innocent man being lured by the scruples power hungry elites in Shree 420.
2.2.2. RAMAYANA
Russia is one of the countries where the Ramayan by sage Valmiki has been translated into the local language several times and thousands of copies are sold every year. It was available on Amazon.com for about 10$. The Russian translation of the Ramayan has helped Russians understand the journey of a King who ruled the hearts of his people unlike Tsar Nicholas, who ruled Russia just before the Russian revolution. In 1948 Indologist Alexander Baranikov for the first time translated the Ramayan into Russian.
The story has been enacted in various theatres all across Russia. In 1957 for the first time the Ramayan was staged in a Russian theatre. Natalia Guseva had written the play for the Moscow Children 's Theatre (erstwhile Soviet Union). Octogenarian Gennady Mikhailovich Pechnikov, who is the only professional artist to play the role of Lord Rama in Europe, has also performed for the then Prime Minister Pandit Jawaharlal Nehru who had come to the theater to see the live Russian Ramayan performance. The play had been staged for 60 years now.
2.3. DEFENCE:
2.3.1. KEY ARMS SUPPLIER
India is the second largest market for the Russian defense industry. In 2004, more than 70% of the Indian Military 's hardware came from Russia, making Russia the chief supplier of defense equipment. In the Soviet era, USSR was the sole arms supplier to India.
2.3.2. RUSSIA’S ROLE IN INDO-PAK WAR OF 1971
The Russians played a key role in the 1971 war between India and Pakistan. India was supported throughout the war by the Russian armed forces, while the same nature of support from the American side was extended to the Pakistani side. The existence of the Russian Navy during the war prevented America from entering the war in 1971. Also the presence of the Russian Navy in the Indian Ocean prevented the war from being extended to the sea. This proved to be a winning move since the Pakistani navy could not send any kind of armed support to Bangladesh via the sea route.

The Soviet Union played a decisive role in the 1971 winter war. The signing the Indo-Soviet Treaty of Friendship and Cooperation turned the 1971 was in India’s favour. The Soviet Union sympathized with the Bangladeshis, and supported the Indian Army and Mukti Bahini during the war. Both India and the USSR recognized that the independence of Bangladesh would weaken the position of its rivals—the United States, Saudi Arabia, and China. India also believed that allowing Bangladesh to gain independence would restrict the Pakistani intrusion to its western borders only, with Bangladesh turning into an ally.

3. DISINTEGRATION PHASE (1982 – 1993)
The disintegration of USSR led to several problems for India, especially in the defence sector. Most of India’s arms and ammunitions were supplied by USSR. The industrial sector of the USSR was effected the most, due to the blocking of the supply of the raw materials from the Eastern USSR provinces. This resulted in major cut backs on the arms support India received from USSR for its military forces. The cryogenic controversy took the world by storm and USSR was forced to not partake in any technology transfer of cryogenics, even if it was for Space research programme. The dip in bilateral trade due to the political instability of USSR also hampered the political and diplomatic relations between the two countries.
3.1 CRYOGENIC DEAL CONTROVERSY
Close to the end of the Cold War USSR and USA had decided to begin the dismantling process of their respective nuclear warheads. As a part of the agreement it was also decided that none of the two countries would try to extend their nuclear influence to other countries in the form of giving out nuclear technological capability to other countries.
In the wake of all these developments India was seeking USSR’s help in developing its Geo Stationary Launch Vehicle to initiate its space programme by ISRO. The transferring of the cryogenic technology to initiate the development of GSLVs and PSLVs was agreed upon by both the states. Cryogenic technology could also be used for producing intercontinental ballistic missiles (ICBM). USA was hence totally against the transfer of cryogenics technology to India even for peaceful means. There was a global uproar over the transfer of nuclear technology to a developing country like India because it could enable them to produce their own nuclear war heads, if need be.
Eventually no technology transfer took place and USSR only sold the cryogenic engines to India to initiate its space programme by ISRO. This controversy also hampered diplomatic relations between USSR and India
3.2 DIFFERENCES OVER RUPEE-ROUBLE EXCHANGE RATE
The major crisis which occurred that time was insufficient trade; bilateral trade cooperation was inadequate, apart from the arms business. The annual trade turnover rate was less than $1.5, ten times less than Russia’s trade with China, 80% of the trade was on rupee repayment track. Promising avenues and cooperation in the energy and transport sectors were discovered. Rapid expansion under the impetus of bilateral rupee payment agreements promised India’s greater access to capital goods but rather than offering new expanded markets the agreement led directly or indirectly to a reduction of India’s hard currency export receipts. Though trade was bilateral, payment arrangements were multilateral and outstanding balances were settled in sterling at the end of the agreement period or on demand. In 1958-59 there was a change, payments of all transactions were to be affected in inconvertible rupees and contracting countries agreed not to demand balancing payments in convertible currency and instead to hold rupee balances. Protocols were added to earlier agreements postponing the convertibility of rupee balances and enabling central banks of partner countries to hold accounts with the Reserve Bank and some commercial banks. India agreed to provide overdrafts (called technical credits) on the partner country 's rupee account to smoothen short-term imbalances. The value of the rupee was fixed in terms of gold for the purpose of these agreements, intergroup transfers of balances were generally disallowed, and no distinction was made between trade and transactions financed from aid. The objective was to conserve foreign exchange and enlarge export markets.

4. POST-SOVIET PHASE (1993)
Ever since political stability was restored in Russia, the country heads have been trying hard to woo back their old political ally India. The thriving cultural and trade relations between the two countries had received a setback during the close of the cold war. With the dawn of a new multi polar world and the technological and economic progress that has taken place in India, post the liberalization of the Indian economy in 1991, Russia has been required to renew the old ties between the two countries. To this end India has been using the expansion and promotion of its culture via Indian film industry to Russian audiences.
4.1 POLITICAL
4.1.1. COMPULSIONS OF THE YELTSIN
The visit of Russian President Boris Yeltsin to India in 1993 was a turning point in India-Russia relations.
New long-term programmes for bilateral economic, financial, commercial, defence, scientific and technological co-operation during the first decade of the new millennium were finalized.
India 's defense equipment purchases from Russia were expected to double from the estimated US $ 7 to 8 billion, during the next decade.
Influenced in his policies and vision by an emotional attachment to Russia 's bilateral relations with India.
Already in Yeltsin years, the agreements such as the agreement on protecting the interests of multiethnic and pluralistic countries, signed during the visit of Indian Prime Minister Narasimha Rao to Moscow in 1994, had established the base for strengthening the relations.

4.1.2. RESURGENCE OF RELATIONS AFTER 2000
From India’s point of view, Mr. Putin in Kremlin is favourable for India-Russia relationship is a time tested and rock solid relationship. Though for the past twenty years Russia had to experience numerous ups and downs, the painful collapse of the Soviet Union, the insecurity of the Yeltsin era and the negative experience with democracy and the market economy in the 1990s have scarred Russian people a lot and that is why today they wish for the safe and stable life. According to many Russians, Mr. Putin has the capacity to maintain the stability of the Country which he tried to do since 2000. On the other hand, some are of the opinion that this might become stagnant and that is why Russia now needs to find a new balance between stability and reform.
Putin appeared on the scene he embarked on the process of internal balancing and exhibited a certain degree of assertion in Russia’s foreign and security policies. And fortunately, the oil prices also started climbing generating adequate resources for internal balancing.
Many countries, including India and China also identified with a multipolar nature of the global system rather than a unilateral world order that was being promoted by the US and its allies in the aftermath of the Soviet collapse.
Because of its geo-strategic location and geo-politics, Russia is almost equally attracted to the West as well as to the Asian powers where China and India are the engines of growth with further impetus given by the other Asian economies.
The Indo-Russian cooperation however has been steady and strong despite some hiccups over the supply of some military hardware although Moscow continues to be the dominant supplier of defence systems to New Delhi.
Another big area of cooperation has been in the hydrocarbon sector. Sakhalin-1 and Imperial Energy assets are the primary acquisitions of India in Russia, while negotiations for more Indian investment are on.
4.2. EDUCATION
4.2.1. INDIAN STUDENTS FLOCKING RUSSIA
Russia is becoming a popular destination for higher education for Indian students as they offer quality education at affordable prices. Russian degrees are well accepted all over the world. Their education is well equipped and the universities offer advanced educational and technical methodology. Russian universities are well known for their medicinal, aviation and engineering courses. The teacher-student ratio followed by the Russian norms is 1:7. the cost of pursuing further studies in Russia ranges from $2500 to $4000 depending on the language one opts for. Some of the sought after universities in Russia are:
Altai State Technical University
Baltuc Institute of Economics and Finance
Bashkirsky State University
Belgorod State University
Chelyabinsk State University

4.4. CULTURE
4.4.1. ZEE T.V. ‘S RUSSIAN OFFERING.
The Russian 's love for Bollywood in Raj Kapoor 's era is now gaining platform on the small screen. India and Russia have shared warm ties for over 5 decades. Indian films have always occupied a special place in the hearts of the Russian people. The mainstream Russian channels show Indian films on a regular basis. Indian films are also available on VCD, DVD and VHS in Russia. The Russians are interested in knowing more about India, it 's culture, ancient history and exotic locations, which can be easily delivered through Televisions and Films.

Russian television viewers will soon have an increased access to Indian content due to the tie-up between Zee Entertainment and Russian firm Sistema Mass-Media. The tie-up declared the sharing and distribution of their existing television channels along with the launch of new ones. Zee Russia a 24x7 Entertainment channel (dubbed in Russian) covers various genres like: Bollywood films, Food, Travel, Lifestyle, Health & Beauty, Indian Fashion, Family dramas, etc.

Zee Russia currently has a market share of around 10 per cent in the Russian pay TV market comprising 25 million households. The total size of the Russian television market (including advertising) is estimated between $10 billion to $15 billion. Zee highly expects of making it big in the Russian market.
4.4.2. INDIAN FILMS SHOT IN RUSSIA
The Russian Govt is willingly approaching Indian Film makers to shoot movies at various locations in Russia at subsidized rates. This not only helps the filmmakers but also provides much needed publicity to Russia. The movies that have recently been shot in Russia have been enlisted below along with their exact locations.
7 KHOON MAAF (2011)- A thriller, directed by Vishal Bharadwaj ,starring Priyanka Chopra in the lead, was shot in India & Russia. Only a few scenes were shot in Russia though. A song sequence which was a massive hit, “DARLING” is inspired by Russian folk song “KALINKA”. The Russian locations are:
Red Square, Moscow, Russia
Saint Petersburg
Lucky – no time for love(2005)- A Romantic Flick directed by, Radhika Rao, Vinay Sapru , starring Salman Khan and Sneha Ullal, was majorly shot in Russia. The locations where scenes were shot are:
Bronze Horseman, Saint Petersburg
Church of the Savior on Spilled Blood, Saint Petersburg
Narva Triumphal Gate, Saint Petersburg
Palace Square, Saint Petersburg
Peter and Paul Cathedral, Saint Petersburg
St. Isaac 's Cathedral, Saint Petersburg
The New Hermitage, Millionnaya Street, Saint Petersburg
Trinity Bridge, Saint Petersburg
Venice of the North, Saint Petersburg
Players(2012)- A Suspense Thriller, directed by duo Abbas- Mastan , starring Abhishek Bachchan, Bipasha, Bobby Deol, Sonam Kapoor , Sikandar Kher & Neil Nitin Mukesh was also shot in bits in Russia. However the locations were of Russia they were shown as a part of New Zealand. The locations are:
The Winter Palace, St. Petersburg
Catherine Palace, St. Petersburg
St. Isaac 's Cathedral, Saint Petersburg
Agent vinod (2012)- An Indian action spy Film , Directed by Sriram Raghavan starring Saif Ali Khan and Kareena Kapoor was shot in bits in Russia in the following locations:
Pulkovo Airport, Saint Petersburg
Monument to the Heroic Defenders of Leningrad, St. Petersburg
Church of the Savior on Spilled Blood, Saint Petersburg

4. REFERENCES
1. 1971 Indo-Pak War: US involvement. Retrieved September, 11, 2012, from http://defenceforumindia.com/forum/military-history/5943-1971-indo-pak-war-us-involvement-5.html

2. Air Marhshal Narayan Menon.(2008). India Russia: Strategic Relations. Retrieved on September 11,2012 from Indian Defence Review Website:

3. http://www.indiandefencereview.com/news/india-russia-strategic-relations/3/

4. C. J. Batliwalla. Bilateral Rupee Payment Agreements. Retrieved on September 11,2012 from http://rbidocs.rbi.org.in/rdocs/content/PDFs/90048.pdf

5. Rakesh Krishnan Simha. (2012, January 22). 1971 indo pak war---how russia countered us moves---some astonishing facts! . Retrieved Septmeber 11, 2012 from Sulekha.com Website: http://rivr.sulekha.com/1971-indo-pak-war-how-russia-countered-us-moves-some-astonishing-facts_550101_blog

6. Raman, B. (1998). Indo-russian relations: primakov 's visit. South Retrieved September 11, 2012, from South Asia Analysis Group website: http://www.southasiaanalysis.org/%5Cpapers%5Cpaper19.html.

7. Rouben Azizian. (October, 2004). Russia-India Relations:Stability Amidst Strategic Uncertainty. Retrieved on September 11,2012 from http://www.apcss.org/Publications/SAS/AsiaBilateralRelations/Russia-IndiaRelationsAzizian.pdf

8. Russia marks golden jubilee of Ramayana 's theatrical debut. (2010, December 18). The Times of India,World, http://articles.timesofindia.indiatimes.com/2010-12-18/europe/28240650_1_ramayana-golden-jubilee-russian-soul (accessed on September 11, 2012)

9. Satya Chaitanya. (Feburary 26, 2012). Retrieved on September 11, 2012 from http://innertraditions.blogspot.in/2009/02/leadership-ramayana-and-russian.html

10. Shanta Nedungadi Varma. (1998). Foreign Policy Dynamics – Moscow and India. New Delhi: Deep & Deep publications Pvt. Ltd.

11. Vishwa. (2010, December 23). Zee TV revives the Russian connection. The Hindu, Business Line, http://www.thehindubusinessline.com/todays-paper/article1029473.ece (accessed on September 11,

References: 1. 1971 Indo-Pak War: US involvement. Retrieved September, 11, 2012, from http://defenceforumindia.com/forum/military-history/5943-1971-indo-pak-war-us-involvement-5.html 2 7. Rouben Azizian. (October, 2004). Russia-India Relations:Stability Amidst Strategic Uncertainty. Retrieved on September 11,2012 from http://www.apcss.org/Publications/SAS/AsiaBilateralRelations/Russia-IndiaRelationsAzizian.pdf 8 9. Satya Chaitanya. (Feburary 26, 2012). Retrieved on September 11, 2012 from http://innertraditions.blogspot.in/2009/02/leadership-ramayana-and-russian.html 10 11. Vishwa. (2010, December 23). Zee TV revives the Russian connection. The Hindu, Business Line, http://www.thehindubusinessline.com/todays-paper/article1029473.ece (accessed on September 11,